Shares Return, Gold Prices May Provide Robust Earnings in 2019
Those who have a lot of money go up on gold. This may have very positive effects on gold prices in 2019 and beyond.
You see, in recent years, corporate money has not really paid attention to the yellow precious metals. In the face of the board, the emotions about gold were very similar: a useless entity that would not add too much value to a portfolio.
As a result, institutional investors have never bought and have seen that the price of gold remains sluggish. Keep in mind that institutional investors have a lot of money. They can move markets up or down.
Now, the emotions seem to be turning. At least, the tone is changing.
Here, as Lombardi Letter, we have provided many proofs that the gold of the major banks is worth seeing.
We have seen large gold banks, such as Bank of America Corp (NYSE: BAC), Goldman Sachs Group Inc. (NYSE: GS) and the Bank of Montreal (NYSE: BMO), say gold prices may rise in 2019 and beyond.
Now institutional investors also support gold - and even talk to them about allocating a significant amount of capital. For the first time in a few years we've heard something like that.
Russ We are constructive on gold, Russ said Russ Koesterich, portfolio manager at BlackRock Global Allocation Fund. “We think it will be a valuable portfolio hedge. We are very wealthy investors: we think about the impact on the entire portfolio and what we now see as value is the value of gold as a diversifier. 201 (Source:, BlackRock Heaps, gü Bloomberg, 6 January 2019.)
Remember, the BlackRock Global Allocation Fund has $ 60.0 billion under management. Assuming the fund allocates gold just below 10% of its portfolio, it is $ 600.0 million.
This amount may not be much, but note that the gold market is very small, according to the stock market and bond market. This amount of money can affect the gold market.
What's Next in Gold Prices in 2019?
Dear reader, the situation for higher gold prices is getting stronger day by day.
The fall of the gold price between 2013 and 2015 was nothing but the blessing of disguise for those who never took the yellow precious metal.
In the midst of sales, the foundations of the gold market have also changed.
Mark my words: If the corporate money comes to buy gold, we can see a similar scenario without losing time. Over the past few years, demand from central banks and consumers has been quite high, with the supply side facing many problems.
I'll end up with this: if 2019 is a star for gold, don't go into shock.
In the increasing direction, $ 1,375 is the gold price level that should be monitored. If this level is discarded (acting as a resistance level for several years), at least we could see fireworks. The next resistance level in gold prices is not up to $ 1,550.
Meanwhile, gold miners should not be ignored. If the price of gold makes an increase of $ 1,375 (or $ 1,550) in 2019, some gold mining stocks may double (if not more).